Hershey May Make Cadbury Bid By Jan. 23 - TheStreet

Hershey May Make Cadbury Bid By Jan. 23

Hershey is preparing a counteroffer to Kraft's hostile bid of $16.5 billion to $17 billion for Cadbury, a report says.
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HERSHEY, Pa. (

TheStreet

) -- The latest in the

Cadbury

(CBY)

takeover story:

Hershey

(HSY) - Get Report

is preparing a counteroffer to

Kraft Foods'

(KFT)

hostile bid of $16.5 billion to $17 billion for the U.K. confectionary maker, a report says.

Hershey has authorized a bid for Cadbury and a formal offer could be made before a Jan. 23 deadline, the

Financial Times

reports, citing people familiar with the matter.

It has previously been reported that

Hershey and Cadbury were talking

, with Cadbury even providing guidance on what price would draw support.

Cadbury, which has called Kraft's offer "derisory" and "unattractive," has made it clear it prefers a bid from Hershey.

Cadbury Chairman Roger Carr has told the

Financial Times

that Hershey is "more appealing" from a cultural view but would have to offer a higher price than Kraft's offer to gain Cadbury's support.

The

Financial Times

says Hershey would authorize Byron Trott, a former

Goldman Sachs

banker who runs his own investment firm, to attract private equity investors to the deal. Also, the Hershey Trust is preparing to make an equity investment of $1.25 billion. The deal also would include the issuance of debt, which would be necessary for a bid in the range of Cadbury's asking price.

-- Written by Joseph Woelfel in New York.

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